EU Urged to Ring-Fence E-Fuel Support Under SMAP | Mariner News
A coalition of 16 companies, investors, and NGOs has urged European lawmakers to ring-fence funding for e-fuels within the proposed Sustainable Maritime Alternative Propulsion (SMAP) mechanism. This initiative aims to secure early investment and accelerate the scale-up of e-fuel production to meet the shipping industry’s future decarbonisation targets.
In a letter dated October 12, the signatories called on MEPs negotiating the revision of the EU Emissions Trading System (ETS) to prioritise the long-term adoption of e-fuels. They estimate that SMAP could provide €15 billion in support between 2028 and 2040, advocating for a significant portion of these allowances to be exclusively allocated to e-fuels to drive necessary long-term production capacity investment.
The groups also pushed for a “book-in-advance” mechanism. This system would allow shipping companies to secure long-term offtake agreements with e-fuel producers, thereby significantly enhancing project bankability. Such a framework would de-risk future fuel procurement for operators while offering producers the financial certainty required for capital-intensive projects.
Most e-fuel projects currently remain at the pre-final investment decision stage, making long-term commitments critical for attracting and securing financial backing. The proposed ring-fencing of funds and the “book-in-advance” system are designed to bridge this investment gap, facilitating the transition from pilot projects to commercial-scale operations.
Notable signatories include shipping group DFDS, energy companies Iberdrola, European Energy, and Moeve, alongside environmental organisation Transport & Environment (T&E). The broad support from both industry and NGOs underscores the perceived urgency and strategic importance of establishing dedicated e-fuel pathways for maritime decarbonisation.
